It’s the Economy!
All three major indexes retreated a bit but holding above support levels. Mixed economic data putting a question mark for how many rate cuts are ahead. Many companies report earnings this week. Most of the accelerated earnings gains due to Trump tax cut is behind us. Geopolitical tensions with Iran is on the forefront with […]
Read MoreDovish FED!
All three major indexes made new highs this week. FED Chairman Mr. Powell’s testimony this week almost promised rate cut end of July and possible two more by end of the year. Focus now will shift to earnings. Most the analysts are cautious leaving room for positive surprises in coming season. Leaders are acting well, […]
Read MoreSolid Job Report and Fed Rate Cut!
S&P is making new high but most of the other indices are facing resistance zone here. Friday’s Job report was solid indicating strength of U. S. economy. Question now is ‘Will the FED cut rates at the end of this month and how much by January 2020?’ VIX closed below 14.40 level indicating volatility is […]
Read MoreTrump-Xi Summit!
Market rally is facing resistance zone here. G20 meeting went without a hitch. President Trump’s meeting with Chinese Premier were civil and gave indication that tariff situation will not escalate. President’s visit to N. Korea’s DMZ zone was a last-minute surprise. He is the first US president to visit N. Korea since cold war. Markets […]
Read MoreFED in dovish mood!
Market rally is working on overcoming resistance zone here. S&P is trading at new high. FED policymakers revealed a big dovish shift indicating they are ready to act if trade war escalates ahead. Wall Street is pricing in three FED rate cuts by January. European central bank indicated same earlier. At G20 meeting, President Trump […]
Read MoreG20 meeting and FED!
Market rally is hitting resistance zone here. This week is Crucial for markets. Tuesday and Wednesday FED is meeting and G20 meeting follows right after that. Will FED be proactive for possible escalating trade war with China? President Trump is expected to meet Chinese Premier during G20 meeting. Market will be watching. Markets remain news […]
Read MoreJob Engine Slowing Down!
Monday’s lows created enough oversold condition for markets to rally, although on lower volume. Mexico is ready to put 600,000 troops at the southern border to pacify President Trump’s demand. Mr. President was also under pressure from other Republicans and business group. Talks with China have begun again. Jobs report on Friday was not good, […]
Read MoreTrump’s Mexico Tariffs are worrisome!
Complacency from President escalates to new level. He just opened third front by announcing Mexico Tariffs of 5% beginning June 5 and ready to expand to 25%, if Mexico do not help him with Immigration issues. This is after new NAFTA deal was agreed upon. This doesn’t bode well for markets. Markets do not like […]
Read MoreComplacency is bad news for markets!
Trade war escalates. Complacency from President and FED policymakers about the strength of the U.S. economy and its ability to withstand a China trade war set for a brutal fourth quarter of 2018. The bad news is that complacency is once again running high. Trump is tightening the screws on China. He thinks the U.S. […]
Read MoreChina Trade war escalates!
Trade war escalates. Yearlong discussions on trade issues with China bear no fruit. Negotiations continue but on Friday President Trump increased tariffs on Chinese goods from 10% to 25% and plans on adding more goods for tariffs. Chinese have promised to retaliate. Chinese have backed off from initial agreements on IP protections. US feels, with […]
Read More